IBRA to sell more of its shares in banks

IBRA to sell more of its shares in banks

Tony Hotland, The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) plans to seek
approval from the House of Representatives during this month to
sell more of the government's remaining shares in a number of
banks, according to agency chairman Syafruddin A. Temenggung.

Syafruddin said on Tuesday that he would discuss the
divestment plan with House Commission IX, which oversees finance,
banking and development planning.

"But we won't sell off all of our remaining shares. We need to
keep sufficient shares in those banks in order to maintain voting
rights," he said.

Some of the remaining shares to be sold included two
percentage points of a 22.35 percent shareholding in Bank
Danamon, two of 22.49 percent in Bank Internasional Indonesia,
six of 26.15 percent in Bank Niaga and 1.5 of 6.5 percent in Bank
Central Asia, said Syafruddin.

He explained that by retaining ownership in the banks, the
government would retain a degree of influence to help ensure
their stability.

IBRA, a government agency set up in early 1998, took over a
number of troubled banks following the late-1990s financial
crisis. The agency is mandated to restructure the banks and
return them to financial health.

Syafruddin added that by owning shares in the publicly listed
banks, the government would benefit if the value of the shares
appreciated.

IBRA is slated for closure on Feb. 27. The Office of the
State Minister of State Enterprises will set up a new entity to
take over IBRA's remaining assets, including bank shares.

Syafruddin was speaking after a scheduled meeting with
Commission IX was adjourned due to the absence of State Minister
of State Enterprises Laksamana Sukardi.

The meeting, which was to discuss the divestment of Bank
Permata and preparations for the closure of IBRA, should have
been attended by Laksamana, along with Syafruddin and Minister of
Finance Boediono.

Several members of the commission protested bitterly at
Laksamana's five consecutive absences, saying that he was in
"contempt of the legislature".

"This is harassment of the House. I really regret his absence
because he prioritized a meeting with a (political) party rather
than this meeting, which involves a wider public interest," said
commission member Daniel Tanjung as he pounded the podium.

Laksamana is a key member of President Megawati
Soekarnoputri's Indonesian Democratic Party of Struggle (PDI-P).

Many commission members, however, also failed to show up at
the meeting. Fewer than 30 of the total 55 members of the
commission were present.

Commission head and PDI-P legislator Emir Moeis said that
Laksamana was attending a party meeting.

In a letter signed by the ministry's secretary-general,
Bacelius Ruru, Laksamana expressed his regret for not being able
to attend the meeting and asked to be represented by the IBRA
chairman instead.

Emir said that the commission would send a letter to the
government about the continual absence of Laksamana. However, he
did not specify whether it would be addressed directly to
Megawati.